Salt Lake City Bookkeeping Blog

Mindbody is a popular online business management software in the health and wellness industry. Mindbody clients include yoga studios, fitness gyms, salons and spas just to name a few. Yoga bookkeeping is one of our industry specialties at Salt Lake City Bookkeeping. We also service a few other industries that use Mindbody including the fitness industry. The software is easy to use and overall our clients seem happy with both its functionality as well as the customer service. Having a bookkeeper consult you that has experience using Mindbody will ensure that your bookkeeping is being handled properly. If you are using Mindbody for your business software here are a few tips for bookkeeping using Mindbody.

Daily Sales Summary

Like any other point of sale system your first concern will be how to accurately record the daily sales. You will want to create a daily sales journal entry in your accounting system. The thing that you need to understand is your daily sales entry needs to mirror the way that funds flow into your bank. If your credit card deposits get deposited on a daily basis (as most do) then your sales summary needs to reflect that. In most cases it is necessary to record each individual day's sales as a separate journal entry.

In order to extract the daily sales from Mindbody I run the daily closeout report. This report can be found from your online client portal by selecting: reports/sales/daily closeout. After you have selected the date you want to look at select view closed data. The first thing you see is a summary of your payments and those would be debits to your daily sales journal entry. Gift card redemptions and sales should hit a gift card liability account as the sale should be recognized when the gift card is redeemed. Your sales category summary information shows up at the bottom of the report and you would credit all those items into the various income categories. You can break it down into as much detail as you like or keep it simple. The last part of the journal entry would be the sales tax which should credit the sales tax liability account. Here is a very simple summary of what your journal entry might look like

Debit - Undeposited Funds (for cash and check payments)

Debit - Checking Account (for Amex payments)

Debit- Checking Account (for Visa, Mastercard and Discover payments)

Debit - Gift Card Liability (for gift card redemptions)

Credit - Sales (for your sales, you can break into as many categories as you like)

Credit - Merchandise Sales (for merchandise sales)

Credit - Sales Tax Liability (for sales taxes collected)

Credit - Gift Card Liability (for gift card sales)

Note that I have separated out Amex from the rest of the credit cards as that is how many merchant processors will deposit them, but you should check with your merchant processor. Also, cash and checks hit undeposited funds because they have not been deposited in the bank, only collected at your place of business.

Sales Tax Filings

When it comes time to file sales taxes you only need to pay sales taxes on those goods or services that you charge sales tax on (you should consult your CPA). One report I have found useful to extract this information is the sales by category report. This report can be found from your online client portal by selecting: reports/sales/sales by category. The report breaks down the sales into products and services and shows you which items are taxable and how much tax has been collected. You should compare this to your sales summary report for the same period before filing. The sales tax check should be coded to the sales tax liability account to offset the amounts recorded from your daily sales summary journal entries.

Credit Card Processing

I have noticed some oddities with the way that merchant processing is handled in Mindbody. I am not sure if all Mindbody clients have the same issues but I have found that most clients processing with Mindbody have this issue. If you are having trouble following the flow of your credit card deposits from Mindbody to your bank I'm hoping I can shed some light. From what I can tell Mindbody deposits swiped and keyed transactions separately into your bank account. If you scroll to the bottom of your daily closeout report you will see a merchant account processing section. The settled swiped and settled keyed transactions in most cases should tie to the previous day's sales. So from my experience it becomes necessary to make separate line items in your journal entry for both swiped and keyed transactions. It is quite a pain and if anyone (including Mindbody) knows of a solution I would love for someone to comment on this article to let everyone know how to resolve this.

Last But Not Least...Reconcile

I couldn't write an article on bookkeeping without stressing the importance of reconciling. The proper recording of your daily sales journal entry should result in the ability to reconcile the bank account (at least the deposits, checks and payments is up to you). While it may seem tedious to record each day's sales separately it is really the only way to accurately reconcile the bank account. You certainly can make one journal entry for the entire month's sales but then you are relying on your merchant processor and bank to properly deposit all of your money.

If you are using Mindbody as your online software I'm hoping this article taught you a bit about how to use Mindbody for your bookkeeping. If you have any additional questions feel free to reach out or leave a comment.

I have a question about what the next step is after I make my general journal entry with my daily closeout information from Mindbody. If I make a General Ledger debit entry into my bank account and then I download my checking account transactions I end up with two entries for my credit cards. What do I do from here?
Thank you,
Deborah Page Fischer

Deborah,
Great question. Typically I will just delete the deposits from my downloaded transactions and then reconcile the account. When you make the journal entry it should make the deposit entries for you. The reason that doesn't match up the deposits when you download is because there is typically a delay in merchant processing. You should be making the journal entry dated the day of sales. The credit card deposit typically is delayed by a few days. Let me know if that helps.

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